What Happened?
A number of stocks fell in the afternoon session after new trade tensions and disappointing earnings from major tech companies weighed heavily on investor sentiment.
A key driver was the news that the White House is considering new restrictions on Chinese exports that use U.S. software, a move that could significantly impact technology companies. This uncertainty over escalating trade tensions created a broad sense of worry in the market. Simultaneously, shares of the semiconductor giant Texas Instruments dropped 6% after its latest earnings and future revenue forecast both came in weaker than expected, which is a big concern for the health of the tech industry. This poor performance from Texas Instruments immediately dragged down the entire semiconductor sector, causing other major chipmakers like Advanced Micro Devices and Micron Technology to also see significant declines.
Compounding the bad news, streaming service Netflix saw its stock slump 9% after it missed its earnings targets, partly blaming a tax dispute in Brazil. The combined effect of renewed trade war fears and the direct evidence of underperformance from influential companies in the technology sector was enough to push the major market indexes lower.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Satellite Telecommunication Services company Globalstar (NASDAQ: GSAT) fell 8.9%. Is now the time to buy Globalstar? Access our full analysis report here, it’s free for active Edge members.
- Digital Media & Content Platforms company Rumble (NASDAQ: RUM) fell 6.3%. Is now the time to buy Rumble? Access our full analysis report here, it’s free for active Edge members.
- Digital Media & Content Platforms company WEBTOON (NASDAQ: WBTN) fell 6.2%. Is now the time to buy WEBTOON? Access our full analysis report here, it’s free for active Edge members.
- Industrial & Environmental Services company Driven Brands (NASDAQ: DRVN) fell 4%. Is now the time to buy Driven Brands? Access our full analysis report here, it’s free for active Edge members.
- Specialized Technology company Mirion (NYSE: MIR) fell 5.1%. Is now the time to buy Mirion? Access our full analysis report here, it’s free for active Edge members.
Zooming In On Globalstar (GSAT)
Globalstar’s shares are extremely volatile and have had 42 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 7 days ago when the stock gained 2.4% on the news that Clear Street initiated coverage on the stock with a "Buy" rating and a $66.00 price target.
Analyst Greg Pendy announced the move, marking the first time the research firm provided a rating for Globalstar. This initiation suggested confidence in the company's business model. The price target represented a significant potential upside from where the stock previously traded.
Globalstar is up 30% since the beginning of the year, but at $41.34 per share, it is still trading 12.2% below its 52-week high of $47.06 from October 2025. Investors who bought $1,000 worth of Globalstar’s shares 5 years ago would now be looking at an investment worth $9,035.
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